MPC's Dale is upbeat on UK

BRITAIN&rsquo;S recession-hit economy appears to have turned and we are likely to experience a period of renewed expansion, the Bank of England&rsquo;s chief economist Spencer Dale said in a speech yesterday. <br /><br />Speaking to the Institute of Directors in Essex, Dale said that monetary and fiscal easing has provided considerable support to the emerging recovery, which has been reinforced by the fall in sterling. <br /><br />But he said there were a number of economic headwinds that may hinder the recovery, most notably the need for banks and consumers to deleverage as well as the rising fiscal deficit.<br /><br />Dale&rsquo;s comments were echoed by the latest report from forecasting consortium Euroframe, which said it expects a tentative recovery in the UK with GDP increasing by 1.1 per cent in 2010 and 1.7 per cent in 2011. <br /><br />The report also indicated that the Eurozone would grow at a similar rate in 2010 but that output would rise at an accelerated rate of two per cent in 2011, despite the impact of severe fiscal tightening.<br /><br />Dale was the only member of the Monetary Policy Committee (MPC) who voted to keep quantitative easing (QE) on hold last month. In his first public speech since the decision, he sought to play down his dissent.